China has described new US tariffs as “bullying,” arguing that they threaten to undermine the stability of the global economic order and escalate trade tensions between the world’s two largest economies.
Commenting on Monday, Chinese Foreign Ministry spokesperson Lin Jian condemned Washington’s decision to impose a 34% tariff on Chinese exports to the US on top of an existing 20% levy, bringing total duties to at least 54%.
The tariffs are “unilateralism, protectionism, and economic bullying,” Lin told a regular press conference, adding that they “seriously impact the stability of the global economic order.”
China’s Finance Ministry declared on Friday that it would impose a matching 34% tariff on all US goods, set to take effect on April 10. Beijing has also filed a lawsuit with the World Trade Organization (WTO).
The escalating trade dispute has had immediate repercussions on global financial markets, sending European, US and Asian stocks tumbling. Economists have raised concerns about the potential for a global recession, with Goldman Sachs increasing the probability of a recession in the US to 45% in the next 12 months.
The US has taken the wrong approach to tackling its domestic economic issues such as insufficient manufacturing competitiveness, an editorial in the Global Times newspaper suggested on Monday.
Rather than addressing the issues through reforms, the US government is “shirking responsibility” and “shifting blame” by resorting to tariff hikes, wrote the paper.
Beijing’s countermeasures are aimed at “demonstrating its firm resolve” not to tolerate the “reckless violation” of global trade rules by the US, it added.
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Risk of US recession at 45% – Goldman Sachs
Market analysts have warned that the tit-for-tat tariffs could disrupt global supply chains, increase consumer prices, and slow economic growth worldwide.
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